AMR Executive Perks Continue - Thanks TWU

[RV4]

From the Pilots Defending the Profession:

http://www.apapdp.org/pdpblasts/072603.php

AMR Grants 260,000 Stock Options to Four AMR Executives

An SEC filing has revealed that AMR has granted 260,000 stock options to the following four AMR executives:

Jeff Campbell - Senior VP and CFO - 84,000 shares

Dan Garton - Executive VP of Marketing - 84,000 shares

Gary Kennedy - Senior VP and General Counsel - 64,000 shares

Charles Marlett - Corporate Secretary - 28,000 shares

These stock options are exercisable beginning in July of 2004 through July of 2008, and have an exercise price of $10.68 per share.

APA pilots recently provided concessions worth an estimated $1 billion dollars annually. Other American Airlines work groups also provided substantial concessions in order to aid our company. PDP questions the need for massive stock grants to AMR executives who are at least partially responsible for our present financial situation, particularly in light of huge employee concessions. We have provided a link that will allow you to email AMR's Board of Directors to express your views on the recent stock grant. Click here to access the email link.

Email Gerard Arpey and the AMR Board of Directors

AMR Grants Phantom Shares of Common Stock to Four AMR Executives as part of the Performance Unit Plan

In addition to the stock options, these four AMR executives also received phantom shares of common stock with an issuance price of $1.00 dollar per share. When exercised, these phantom share of stock pay the full trading price of the stock.

These shares are potentially exercisable on January 1st, 2006, and are part of the Performance Unit Plan which is in effect for years 2003 through 2005. The vesting of these phantom stock units is dependent upon the total shareholder return of AMR's common stock relative to competitors' TSR. The following lists the amount of phantom common stock issued to each executive:

Jeff Campbell - Senior VP and CFO - 44,000 shares

Dan Garton - Executive VP of Marketing - 44,000 shares

Gary Kennedy - Senior VP and General Counsel - 36,000 shares

Charles Marlett - Corporate Secretary - 19,000 shares

 

[RV4]

Is there anyway to find how the Little/Gless/Yingst/McDonald gang has profited in their stock trading of AMR?

You know buy the stock low on BK news, then "sell out the members" and then sell the stock at a huge profit?

 

[AAmech]

So I take it amfa has stopped all bonuses and stock options at NWA, Alaska, SWA and UAL?

 

[Buck]

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On 7/27/2003 913 PM AAmech wrote:


So I take it amfa has stopped all bonuses and stock options at NWA, Alaska, SWA and UAL?

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So I take it we are discussing AMR and the concessionary contract brought to us by the TWU.

 

[RV4]

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On 7/27/2003 913 PM AAmech wrote:


So I take it amfa has stopped all bonuses and stock options at NWA, Alaska, SWA and UAL?

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NO! But they have NOT taken concession either!
In fact, even the lowly IAM is now demanding raises instead of concessions due to exectuive pay and perks.
NWA ground workers demand raises
BY MARTIN J. MOYLAN
Pioneer Press

Rejecting Northwest Airlines' call for wage cuts and other givebacks, the union representing more than 15,000 Northwest baggage handlers, sales agents and other ground workers is demanding 10 percent raises for them this year and next.

In April, Northwest proposed that the ground workers accept a deal that would save the airline $120 million a year for six years, largely by slashing 1,450 jobs. Workers would also take 2 percent pay cuts, give up two weeks' vacation and provide work-rule and other concessions.

The union argues that its counteroffer makes sense because other Northwest employees and managers are getting raises while the airline campaigns for concessions. And with $2.8 billion in cash, the Eagan-based airline does not appear to be in danger of bankruptcy despite its woes, said Robert De Pace, president of the International Association of Machinists District 143.

"Every other group on the property is above the industry standard (for pay),' said De Pace. "But our members are like fourth, fifth or sixth in the industry. We don't see anyone making moves to give back money. And if that's the case, we want our fair share.'

The union also is seeking increased pension benefits and full company payment of health care premiums.

Northwest, which has lost $1.4 billion since the start of 2001 and laid off 17,000 employees, says it needs to cut labor costs by about $1 billion year to have a shot at getting back in the black.

United Airlines, American Airlines and US Airways have won billions of dollars in concessions from their unions. Northwest argues that it needs similar concessions to compete with them and other airlines, especially low-cost, low-fare carriers such as AirTran, ATA and Southwest.

Northwest would not publicly respond to the IAM's proposal, saying it does not discuss labor negotiations in the media.

With its big stash of cash, Northwest will have a hard time wringing concessions from its unions. It argues that most of the cash is borrowed money. But Northwest certainly doesn't seem to be positioned to threaten a bankruptcy anytime soon to force concessions.

"We are skeptical that its labor groups will give up much in light of the carrier's relatively strong liquidity,' Credit Suisse First Boston analyst James Higgins wrote in a research note issued Friday. "With $2.8 billion in unrestricted cash . large labor concessions will be difficult to win."

Northwest is in negotiations with its pilots. It recently rejected their offer of a two-year contract in which they'd pass up a 5.5 percent raise due them this September.

Northwest contracts with mechanics and flight attendants are amendable in 2005. But the airline wants them amended this year.

WHAT DID YOUR TWU DO?

 

[RV4]

AAmech,

DO you condone the issue of these stock options to sneior management?

 

[KCFlyer]

RV4 - Stock options are only worth something under two conditions - the option is exercised, and the stock is selling for a higher price than the option price. So this "perk" is worth $0.00 until it is exercised. And it provides an "incentive" to managment to try to improve the stock price. And bear in mind that should AA have to file bankruptcy, those options become totally worthless. I'm sure they would have offered them to you, but you only want a paycheck, and you really don't care how your company is performing. As has been mentioned, the other airlines represented by AMFA have stock options granted to their executives, so I really don't see how the TWU is to "thank" for this.

Also, look at the conditions cited in your cut and paste:

These shares are potentially exercisable on January 1st, 2006, and are part of the Performance Unit Plan which is in effect for years 2003 through 2005. The vesting of these "phantom" stock units is dependent upon the total shareholder return of AMR's common stock relative to competitors' TSR. The following lists the amount of phantom common stock issued to each executive:

I am sure that if managment came to you and said that they might give you a raise in 3 years but only if all these conditions are met, then you would #### and moan about how unfair this was. But somehow it's not unfair to place those kinds of conditions on management.

 

[AAmech]

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On 7/29/2003 5:28:40 AM RV4 wrote:


AAmech,

DO you condone the issue of these stock options to sneior management?

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I don't "Condone" them or like them but I understand they are needed for AA to have any hope of attracting and keeping "good" senior management.

 

[Bob Owens]

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On 7/29/2003 12:08:15 PM AAmech wrote:




I don't "Condone" them or like them but I understand they are needed for AA to have any hope of attracting and keeping "good" senior management.

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Unlike the workers who should accept massive pay and benifit cuts.

 

[Bob Owens]

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On 7/29/2003 12:05:53 PM AAmech wrote:




True they haven't. But they haven't been in Sect 1113 negotiations either. NW is the most financially stable hub and spoke airline in the US yet they have the highest percentage of furloughed mechanics. How can this happen when they have a powerful Craft Union (so-called) representing them?


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Funny, I thought that Sect 1113 was part of the bankruptcy code, not the “if you don’t give me everything I want I will go bankruptâ€￾ section of the “Jim Little/TWU How to Sell Concessionsâ€￾ manual.

AA did not go bankrupt so how can we say that we were operating under a section of that law? We were negotiating under the threat of Bankrupcty from the largest airline in the world that had over $1billion dollars cash at the time.
​

 

[AAmech]

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On 7/27/2003 9:56:58 PM RV4 wrote:




NO! But they have NOT taken concession either!
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True they haven't. But they haven't been in Sect 1113 negotiations either. NW is the most financially stable hub and spoke airline in the US yet they have the highest percentage of furloughed mechanics. How can this happen when they have a powerful Craft Union (so-called) representing them?

 

[FWAAA]

Sounds like a bunch of mechanics are whinin' about other employees who were able to negotiate a better deal for themselves (without the help of ANY union).

I'd like to see the pay of ALL AMR employees tied to the financial performance of AMR stock. And I'm talking about more than just options for 37 million shares granted to the employees.

 

[KCFlyer]

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On 7/29/2003 12:24:36 PM Bob Owens wrote:

We were negotiating under the threat of Bankrupcty from the largest airline in the world that had over $1billion dollars cash at the time.

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Golly...just over a year ago, the posts over on the U board were talking about how they had two billion dollars cash at the time.

 

[limit]

The vast majority of management and other non-union employees at AA were not given the opportunity to negotiate. They did take a survey. Terms were imposed.

Would you mind expanding on your stock idea?